The Goldman Sachs Group, Inc., a financial institution, provides a range of financial services for corporations, financial institutions, governments, and individuals worldwide. It operates through Global Banking & Markets, Asset & Wealth Management, and Platform Solutions segments. The Global Banking & Markets segment provides financial advisory services, including strategic advisory assignments related to mergers and acquisitions, divestitures, corporate defense activities, restructurings, and spin-offs; and relationship lending, and acquisition financing, as well as secured lending, through structured credit and asset-backed lending and involved in financing under securities to resale agreements. This segment also offers client execution activities for cash and derivative instruments; credit and interest rate products; and provision of mortgages, currencies, commodities, and equities related products, as well as underwriting services. The Asset & Wealth Management segment manages assets across various classes, including equity, fixed income, hedge funds, credit funds, private equity, real estate, currencies, and commodities; and provides customized investment advisory solutions, wealth advisory services, personalized financial planning, and private banking services, as well as invests in corporate equity, credit, real estate, and infrastructure assets. The Platform Solutions segment offers credit cards and point-of-sale financing for purchase of goods or services. This segment also provides cash management services, such as deposit-taking and payment solutions for corporate and institutional clients. The Goldman Sachs Group, Inc. was founded in 1869 and is headquartered in New York, New York.

Goldman Sachs looks strong in terms of earnings quality and profitability, but the market is already pricing in a clearly elevated level of expectations. The P/E ratio at 15.71 is 20.6% above the industry median, while P/S and P/B look even more stretched: 4.70 and 2.44 respectively, which is significantly above industry benchmarks and indicates a premium to the sector. At the same time, the dynamics of P/B and P/S over the last few quarters have generally been stable or slightly rising, meaning the re-rating has not been unwound even amid improving results. The company’s strong side is high profitability: ROE of 16.19%, return on tangible equity of 16.20%, net profit margin of 30.28%, and operating margin of 39.72% are above the industry median and have been improving over the years. EPS, net income, and operating income are also showing solid growth, which supports the fundamental valuation and reduces the risk of a sharp downward revision. Revenue for TTM increased to $20.34 billion, and EBITDA rose to $9.07 billion, confirming the operational expansion of the business. However, ROA of 1.03% and ROI of 4.14% look weaker than desired for such a rich valuation, which limits the potential for further multiple expansion. The balance sheet remains large and liquid in absolute terms, but the current ratio of 0.63 and quick ratio of 0.00 indicate low short-term liquidity, which is not critical for a financial business but still warrants caution. Leverage is notably high: debt/equity of 2.57 and long-term debt of $315.4 billion are increasing, while total liabilities are growing faster than equity, adding risk to the valuation. The dividend yield of around 0.50% remains low and does not provide strong price support through the income factor. Overall, the fundamentals point to a high-quality, profitable, and growing business, but with an already expensive valuation and an imperfect balance sheet, so the target forecast should be slightly reduced while maintaining a moderately positive view of the company.

Goldman Sachs Group, Inc. (The)

Сильный индекс, без изменений. Быки в растерянности.

Strong index, flat. The bulls are confused.

Слабый индекс, значительно упал. Рынок не поддерживает быков.

Weak index, significantly down. The market does not support the bulls.

Средний индекс, значительно упал. Отток средств из лонгов увеличился и находится на высоком уровне.

Medium index, significantly down. The outflow of funds from longs has increased and is at a high level.

Strong profitability and EPS growth support GS, but its high P/B and P/S valuation and rising debt burden limit upside.

HSBC Holdings plc HSBC is winding down its transaction services business in Germany, with approximately 320 positions expected to be phased out by 2028. The move is part of the bank’s broader simplification strategy to reduce exposure to lower-priority operations and redirect resources toward core franchises and higher-growth markets.
HSBC Streamlines Germany Operations to Improve Efficiency
Approximately 300 positions at HSBC Transaction Services GmbH and 20 at HSBC Service Company Germany GmbH will be affected. The transaction services business provides securities processing, administration, and custody services.
The current restructuring follows HSBC’s earlier exit from other businesses in Germany. The bank sold its German private banking business to BNP Paribas in 2024 and agreed to carve out its custody and fund administration businesses. These actions reduced the domestic processing volumes supporting the German transaction-services infrastructure.
The Germany wind-down is part of HSBC’s wider simplification program. By the first half of 2026, the bank had actioned $1.7 billion of annualized savings, with $1.4 billion of restructuring costs incurred. The company has raised its end-2026 annualized savings target to approximately $2 billion while maintaining its original $1.8 billion restructuring cost budget.
Simplification Savings & Restructuring Cost Trajectory
Image Source: HSBC Holdings plc
Over the medium term, management expects to reallocate approximately $1.8 billion of savings from non-strategic operations toward higher-returning businesses. This includes around $0.3 billion of cost synergies realized from the privatization of Hang Seng Bank.
HSBC Redirects Resources Toward Core Growth Businesses
The Germany exit does not signal a retreat from transaction banking. HSBC continues to invest in its global Wholesale Transaction Banking (WTB) franchise, which includes Global Payments Solutions, Global Trade Solutions, Securities Services and foreign exchange.
WTB fee and other income increased 4% year over year on a constant-currency basis to $6.1 billion in the first half of 2026.
WTB Fee & Other Income by Product Stream
Image Source: HSBC Holdings plc
Our Take on HSBC’s Business Simplification Plan
The Germany transaction-services wind-down is a positive step in HSBC’s portfolio optimization strategy. While the immediate financial benefit is difficult to quantify because it has not separately disclosed restructuring costs or savings from the Germany exit, the broader simplification program is already generating meaningful savings.
HSBC is combining cost discipline with investment in high-growth businesses, particularly the Asia region. The bank is expanding its Asian wealth business, targeting high- and ultra-high-net-worth clients. In China, it is growing through wealth centers, Citigroup’s retail wealth acquisition, digital upgrades and hiring. In India, HSBC is adding 20 branches and expanding Premier Banking. It has launched Global Private Banking and completed the buyout of L&T Investment Management.
These actions suggest that the resources freed through portfolio simplification are being directed toward franchises with stronger growth and return potential. HSBC continues to target annualized RoTE of at least 17% through 2026-2028 and constant-currency revenue growth of 5% by 2028.
Over the past year, shares of HSBC have soared 50%, outperforming the industry's rally of 32.5%.
One-Year Price Performance
At present, HSBC carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Restructuring Efforts by Other Global Banks
Citigroup Inc. C is reshaping its China operations around institutional banking and capital markets, following the sale of its China consumer banking business to HSBC in 2024. The proposed wholly owned brokerage platform (approval likely coming later this month) would provide A-share brokerage, underwriting, research, and principal trading capabilities. This is aimed at deepening existing client relationships and capturing a larger share of domestic financial activity.
The China brokerage expansion also supports Citigroup’s OneCiti strategy of increasing wallet share across client relationships. By combining corporate banking, cash management, trade finance and securities services, the bank can offer a broader range of products to institutional clients.
The Goldman Sachs Group, Inc. GS has been restructuring its business mix toward higher-growth, capital-light businesses, with the Asset & Wealth Management division a key focus. In sync with this, earlier this week, the company announced a strategic collaboration with IG Wealth Management to expand its presence in Canada’s wealth management market.
Additionally, Goldman has expanded its investment management capabilities through the acquisition of Innovator Capital Management, while agreeing to acquire NEOS Investments and LCN Capital Partners. These moves broaden the company’s ETF, alternatives, and real estate capabilities and strengthen its ability to attract third-party assets.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Can HSBC's Germany Pullback Support Profitability and Efficiency?

For Immediate Release
Chicago, IL – September 11, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: The Goldman Sachs Group, Inc. GS, RTX Corp. RTX, Abbott Laboratories ABT, NLI Holdings, Inc. NL and Precipio, Inc. PRPO.
Here are highlights from Thursday’s Analyst Blog:
Top Research Reports for Goldman Sachs, RTX and Abbott
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including The Goldman Sachs Group, Inc., RTX Corp. and Abbott Laboratories, as well as two micro-cap stocks NLI Holdings, Inc. and Precipio, Inc. The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Today's Featured Research Reports
Goldman Sachs’ shares have outperformed the Zacks Financial - Investment Bank industry over the past year (+33.7% vs. +22.5%). The company’s earnings surpassed estimates in each of the trailing four quarters. Goldman Sachs is prioritizing durable revenue streams, with improving deal activity and a strong investment banking backlog supporting fee-income growth. The recent IG Wealth Management collaboration, along with the planned LCN and NEOS acquisitions, is likely to further strengthen Asset & Wealth Management.
However, the rising expense base might hamper its near-term profitability. Elevated provisions amid a volatile macro backdrop remain a key concern. Its high dependence on overseas revenues is worrisome.
Nevertheless, the company’s private credit expansion is expected to diversify revenues and drive long-term growth. Its strong capital and liquidity position will continue to support shareholder returns.
(You can read the full research report on Goldman Sachs here >>>)
Shares of RTX have outperformed the Zacks Aerospace - Defense industry over the past year (+27.2% vs. -9.5%). The company is supported by a steady recovery in commercial aerospace, strong defense orders and robust backlog. Rising global air traffic, higher commercial OEM and aftermarket sales and strong demand for large commercial engines should aid growth.
RTX's defense business remains well-positioned, backed by strong bookings from the Pentagon and foreign allies. The company ended the second quarter of 2026 with a backlog of $289 billion. Its cash generation funds expansion, innovation and debt reduction.
However, persistent supply-chain disruptions remain a concern. Aircraft engine availability issues may affect production and deliveries. Tariff-related uncertainty and expanded Russia-linked sanctions also pose risks to RTX’s operations. The Zacks analyst have a Neutral rating on RTX shares.
(You can read the full research report on RTX here >>>)
Abbott’s shares have declined -18.9% over the past year against the Zacks Medical - Products industry’s decline of -28.9%. The company’s Rapid and Molecular Diagnostics remain exposed to respiratory testing volatility, China pricing policies still constrain Core Laboratory growth, and Exact Sciences adds integration, financing and dilution risks. With full-year sales guidance maintained and EPS guidance raised, the risk-reward profile is balanced for a Neutral view.
Nevertheless, Abbott’s diversified portfolio supports steady underlying growth, led by Medical Devices, FreeStyle Libre and Established Pharmaceuticals. Core Laboratory demand remains resilient, while Cancer Diagnostics adds an oncology platform and a faster-growing screening franchise.
Nutrition is showing sequential improvement as pricing actions, WIC wins and new products support volume recovery. A steady pipeline across electrophysiology, structural heart and diabetes should sustain product-led growth.
(You can read the full research report on Abbott here >>>)
Shares of NLI have outperformed the Zacks Electronics - Miscellaneous Components industry over the past year (+15.6% vs. -11.7%). This microcap company with a market capitalization of $330.07 million benefits from a diversified earnings base, established competitive positions and improving operating efficiency across CompX and Kronos.
Broad-based demand in Security Products, industrial growth in Marine Components and Kronos’ lower cost structure support earnings resilience and the operating outlook. Strong liquidity also provides flexibility for investment, dividends and legacy obligations.
However, NL remains materially exposed to Kronos and the cyclical TiO2 market, where pricing recovery is incomplete, and low-cost global supply could constrain sustained margin expansion. Environmental and litigation obligations remain difficult to predict, while currency volatility can offset operating improvements at Kronos and reduce the visibility of NL’s earnings recovery.
(You can read the full research report on NLI here >>>)
Precipio’s shares have outperformed the Zacks Medical Info Systems industry over the past year (+26.5% vs. -16%). This microcap company with a market capitalization of $45.83 million has an investment case which rests on rising pathology volumes, improving margins and a developing products business. Pathology growth is supporting service revenues, while the Products division is benefiting from distributor expansion, a growing pipeline and commercialization of the rapid AML assay.
The integrated pathology-product model may provide operating leverage as internally validated diagnostics are scaled externally. Liquidity and operating cash flow improved, although profitability remains uneven.
However, key risks include slower pipeline conversion, shipment timing, customer concentration, reimbursement and pricing-mix pressure, supplier obligations, cybersecurity litigation and funding sensitivity. The valuation points to restrained investor expectations, creating upside potential if revenue growth, margin improvement and operating consistency strengthen.
(You can read the full research report on Precipio here >>>)
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

The Zacks Analyst Blog Highlights Goldman Sachs, RTX, Abbott, NLI and Precipio

Key Points
Lockheed Martin faces risks from fixed-price contracts and political scrutiny.
Valuation reflects current risks, but profit margins could face pressure.
Given Wall Street's usual optimism, the three buy ratings, six hold ratings, and one sell rating (from Goldman Sachs), according to Visible Alpha, indicate a cautious view of Lockheed Martin (NYSE: LMT) stock. That may surprise many investors, given the company's attractive valuation, all-time-high backlog of $230 billion in the second quarter (almost three times its estimated 2026 sales), and surging global defense budgets.
Does the caution make sense?
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Lockheed Martin stock analysis
I'll cut to the chase here. I think the caution is justified for three key reasons:
A combination of increasing complexity and government demands, notably from the U.S. government, is placing stress on fixed-price development programs, bringing about significant charges and cost overruns for defense companies in recent years.
In common with Boeing's (NYSE: BA) defense business, Lockheed Martin has relatively high exposure to these sorts of developmental programs (classified missile and aeronautics programs and the F-35 fighter serve as examples) when compared to, say, RTX (NYSE: RTX), which has relatively more solutions based on repeatable production such as Tomahawk missiles, PAC-3 missile segment enhancement, and advanced medium-range air-to-air missiles (AMRAAMs).
Defense budgets may have surged, but so has government debt, and real questions remain about where global defense budgets can go from here.
Defense industry challenges
To flesh out the points above, consider that Boeing's management has said fixed-price development programs account for only 15% of its defense segment's revenue, yet these programs have led to ongoing losses even as the rest of the segment remains profitable. In addition, they run over five separate programs.
Lockheed Martin has significant exposure to fixed-price contracts, with $45 billion of its $75 billion in 2025 revenue coming from such contracts. In comparison, RTX's Raytheon defense business reported just $16.6 billion in fixed-price contracts in 2025, compared with the company's overall revenue of $88.6 billion. In addition, RTX has been willing to walk away from unfavorable contracts.
However, Lockheed Martin's exposure increases risk, especially as the defense industry has drawn criticism from both Republican (including President Trump) and Democratic politicians for making share buybacks and paying dividends while failing to deliver on programs.
A stock to buy?
The bulls maintain that these issues are already reflected in the stock's valuation, and they would have a point. In addition, the current backlog ensures strong revenue over the medium term, with robust cash flow in tow.
Still, pressure on defense companies from increases in highly complex, difficult-to-deliver defense programs under fixed-price contracts appears to be part of a trend. Moreover, another clear trend, rising debt levels, is likely to put pressure on defense budgets.
As such, investors shouldn't assume defense spending will rise inexorably, and they should assume more strain on profit margins. That's the reason for caution.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 950%* — a market-crushing outperformance compared to 211% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.
*Stock Advisor returns as of September 10, 2026.
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing, Goldman Sachs Group, Lockheed Martin, and RTX. The Motley Fool has a disclosure policy.

Lockheed Martin Yields 2.6% and Trades at 17.6 Times Earnings. Is Wall Street Right to Be Cautious on the Stock ?

Thursday, September 10, 2026
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including The Goldman Sachs Group, Inc. (GS), RTX Corp. (RTX) and Abbott Laboratories (ABT), as well as two micro-cap stocks NLI Holdings, Inc. (NL) and Precipio, Inc. (PRPO). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Pre-Markets in Red on Higher Crude Oil Prices and U.S. Bond Yields
Today's Featured Research Reports
Goldman Sachs’ shares have outperformed the Zacks Financial - Investment Bank industry over the past year (+33.7% vs. +22.5%). The company’s earnings surpassed estimates in each of the trailing four quarters. Goldman Sachs is prioritizing durable revenue streams, with improving deal activity and a strong investment banking backlog supporting fee-income growth. The recent IG Wealth Management collaboration, along with the planned LCN and NEOS acquisitions, is likely to further strengthen Asset & Wealth Management.
However, the rising expense base might hamper its near-term profitability. Elevated provisions amid a volatile macro backdrop remain a key concern. Its high dependence on overseas revenues is worrisome.
Nevertheless, the company’s private credit expansion is expected to diversify revenues and drive long-term growth. Its strong capital and liquidity position will continue to support shareholder returns.
(You can read the full research report on Goldman Sachs here >>>)
Shares of RTX have outperformed the Zacks Aerospace - Defense industry over the past year (+27.2% vs. -9.5%). The company is supported by a steady recovery in commercial aerospace, strong defense orders and robust backlog. Rising global air traffic, higher commercial OEM and aftermarket sales and strong demand for large commercial engines should aid growth.
RTX's defense business remains well-positioned, backed by strong bookings from the Pentagon and foreign allies. The company ended the second quarter of 2026 with a backlog of $289 billion. Its cash generation funds expansion, innovation and debt reduction.
However, persistent supply-chain disruptions remain a concern. Aircraft engine availability issues may affect production and deliveries. Tariff-related uncertainty and expanded Russia-linked sanctions also pose risks to RTX’s operations. The Zacks analyst have a Neutral rating on RTX shares.
(You can read the full research report on RTX here >>>)
Abbott’s shares have declined -18.9% over the past year against the Zacks Medical - Products industry’s decline of -28.9%. The company’s Rapid and Molecular Diagnostics remain exposed to respiratory testing volatility, China pricing policies still constrain Core Laboratory growth, and Exact Sciences adds integration, financing and dilution risks. With full-year sales guidance maintained and EPS guidance raised, the risk-reward profile is balanced for a Neutral view.
Nevertheless, Abbott’s diversified portfolio supports steady underlying growth, led by Medical Devices, FreeStyle Libre and Established Pharmaceuticals. Core Laboratory demand remains resilient, while Cancer Diagnostics adds an oncology platform and a faster-growing screening franchise.
Nutrition is showing sequential improvement as pricing actions, WIC wins and new products support volume recovery. A steady pipeline across electrophysiology, structural heart and diabetes should sustain product-led growth.
(You can read the full research report on Abbott here >>>)
Shares of NLI have outperformed the Zacks Electronics - Miscellaneous Components industry over the past year (+15.6% vs. -11.7%). This microcap company with a market capitalization of $330.07 million benefits from a diversified earnings base, established competitive positions and improving operating efficiency across CompX and Kronos.
Broad-based demand in Security Products, industrial growth in Marine Components and Kronos’ lower cost structure support earnings resilience and the operating outlook. Strong liquidity also provides flexibility for investment, dividends and legacy obligations.
However, NL remains materially exposed to Kronos and the cyclical TiO2 market, where pricing recovery is incomplete, and low-cost global supply could constrain sustained margin expansion. Environmental and litigation obligations remain difficult to predict, while currency volatility can offset operating improvements at Kronos and reduce the visibility of NL’s earnings recovery.
(You can read the full research report on NLI here >>>)
Precipio’s shares have outperformed the Zacks Medical Info Systems industry over the past year (+26.5% vs. -16%). This microcap company with a market capitalization of $45.83 million has an investment case which rests on rising pathology volumes, improving margins and a developing products business. Pathology growth is supporting service revenues, while the Products division is benefiting from distributor expansion, a growing pipeline and commercialization of the rapid AML assay.
The integrated pathology-product model may provide operating leverage as internally validated diagnostics are scaled externally. Liquidity and operating cash flow improved, although profitability remains uneven.
However, key risks include slower pipeline conversion, shipment timing, customer concentration, reimbursement and pricing-mix pressure, supplier obligations, cybersecurity litigation and funding sensitivity. The valuation points to restrained investor expectations, creating upside potential if revenue growth, margin improvement and operating consistency strengthen.
(You can read the full research report on Precipio here >>>)
Other noteworthy reports we are featuring today include Coherent Corp. (COHR), NetApp, Inc. (NTAP) and Coinbase Global, Inc. (COIN).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Featured Reports
AI Optics Demand Benefits Coherent (COHR) Amid Supply Constraints
Per the Zacks analyst, Coherent benefits from strong AI optics demand, solid bookings and long-term customer commitments. However, supply constraints in Indium Phosphide may limit revenue growth.
Coinbase (COIN) Banks on Improving Top Line, Expenses Hurt
Per the Zacks analyst, higher transaction revenues, subscription and services revenues, growth in crypto assets should drive Coinbase revenues. However, escalating expenses hurt its margins.
CACI International (CACI) Benefits From Rising Defense Spending
Per the Zacks analyst, favorable defense spending, strong program exposure and growing demand for mission-critical technologies are supporting CACI International's growth prospects.
Product Innovation & AIS Growth Aid Acuity (AYI), High Costs Ail
Per the Zacks analyst, Acuity benefits from product innovation, AIS expansion, strong QSC contributions and building automation demand. However, soft ABL sales and cost pressures remain concerns.
Chord Energy's Williston Scale Supports Growth and Cash Flow
Per the Zacks analyst, Chord Energy's scale and long-lateral inventory in the Williston Basin support production stability and free cash flow growth. However, rising operating costs raise concerns.
Digital Adoption & Investments Aids OUTFRONT Media (OUT)
Per the Zacks Analyst, OUTFRONT Media gains from digital adoption and the use of automated sales channels and strategic technological investments. However, cyclical ad demand and debt costs pose risks
Sarepta's (SRPT) Success with siRNA Pipeline Lifts Long-Term Sentiment
Though tighter labeling of Sarepta's Elevidys weighs on the near term, the Zacks Analyst is enthused by early data on two Arrowhead-linked drugs which offers clinical validation for siRNA candidates.
New Upgrades
NetApp (NTAP) Gains From AI-Driven All-Flash Storage Demand
Per the Zacks analyst, NetApp is gaining from AI-driven all-flash storage demand, with the first quarter fiscal 2027 revenue surging 46.6% to a record $1.31 billion on strong AI workloads.
TTM Technologies (TTMI) Gains From AI and Defense Demand
Per Zacks Analyst, TTM Technologies benefits from robust AI infrastructure and defense demand, strong backlog visibility and advanced PCB and RF expansion supporting growth.
American Eagle's (AEO) Aerie Strength & Cost Efforts Aid Growth
Per the Zacks analyst, Aerie's strong momentum, strategic investments, digital capabilities and improving expense leverage position American Eagle for sustained growth and profitability.
New Downgrades
High Input Costs Ail International Flavors' (IFF) Margins
The Zacks analyst is concerned that high costs for raw material, energy and logistics as well as currency-translation risks will likely hurt International Flavors' results in the near term.
Pool Weakness and Inventory Correction to Weigh on Pentair (PNR)
The Zacks analyst is concerned that larger-than-anticipated inventory correction along with weak end-market demand in the Pool channel will continue to hurt Pentair's results in the near-term.
Campbell's (CPB) Appears Troubled by Elevated Cost Inflation
Per the Zacks analyst, cost inflation hurt Campbell's gross margin. In Q4, adjusted gross profit margin fell 190 basis points to 28.6%, impacted by cost inflation and supply-chain costs among others.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).

Top Research Reports for Goldman Sachs, RTX & Abbott

Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Goldman Sachs Group Inc (Symbol: GS), where a total of 18,157 contracts have traded so far, representing approximately 1.8 million underlying shares. That amounts to about 102.2% of GS's average daily trading volume over the past month of 1.8 million shares. Especially high volume was seen for the $1100 strike call option expiring September 18, 2026, with 2,391 contracts trading so far today, representing approximately 239,100 underlying shares of GS. Below is a chart showing GS's trailing twelve month trading history, with the $1100 strike highlighted in orange:
Expand Energy Corp (Symbol: EXE) saw options trading volume of 23,974 contracts, representing approximately 2.4 million underlying shares or approximately 100.8% of EXE's average daily trading volume over the past month, of 2.4 million shares. Particularly high volume was seen for the $86 strike put option expiring October 23, 2026, with 6,618 contracts trading so far today, representing approximately 661,800 underlying shares of EXE. Below is a chart showing EXE's trailing twelve month trading history, with the $86 strike highlighted in orange:
And Reddit Inc (Symbol: RDDT) saw options trading volume of 48,769 contracts, representing approximately 4.9 million underlying shares or approximately 68.3% of RDDT's average daily trading volume over the past month, of 7.1 million shares. Especially high volume was seen for the $170 strike call option expiring September 18, 2026, with 3,651 contracts trading so far today, representing approximately 365,100 underlying shares of RDDT. Below is a chart showing RDDT's trailing twelve month trading history, with the $170 strike highlighted in orange:
For the various different available expirations for GS options, EXE options, or RDDT options, visit StockOptionsChannel.com.
Further GS Research:

Notable Thursday Option Activity: GS, EXE, RDDT

Key Points
Robinhood recently got approval to underwrite IPOs at a key time for IPO activity.
It was listed as an underwriting partner for the Oura IPO, which was just filed.
Robinhood continues to break down barriers for the retail investor.
2026 is the year of the initial public offering (IPO) resurgence. After hitting a high of 1,035 IPOs in 2021 during the special purpose acquisition company (SPAC) craze, there were only 181 the year after when the S&P 500 lost almost 20% of its value in 2022. Since then, there have been limited high-profile IPOs, until recently.
2026 has already seen the two largest IPOs ever. Space Exploration Technologies debuted with $86.7 billion raised, while just a few weeks later, South Korean memory company SK Hynix raised $26.5 billion. On the heels of that, the artificial intelligence (AI) company Anthropic, maker of the Claude large language model (LLM), plans to go public by the end of October. According to reports, it's aiming to raise up to $100 billion.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Just in time, fintech powerhouse Robinhood Markets (NASDAQ: HOOD) has been approved by regulators to start underwriting stocks, and it just got its first job.
More power to retail investors
Robinhood was the first trading platform to offer fee-free trades, starting a revolution for retail investors. Today, fee-free trades are the norm. Robinhood has remained the home for retail investors who band together to spark change, like they did last year with Opendoor Technologies.
Management is committed to breaking down barriers in finance, and it rolls out new products all the time. "Robinhood exists to make everyone an owner," CEO Vlad Tenev said on the second-quarter earnings call. It offers IPO access to its users, and it was one of the five platforms chosen for retail investor access to the Space Exploration Technologies IPO in June. At that time, Robinhood received regulatory approval to become an underwriter. "We intend to be disruptive in this space," Tenev said.
Underwriting is the process of preparing a company to go public, including preparing all regulatory filings, helping set a price, buying the stock to sell to the public, and other activities. Most companies have a lead underwriting institution, plus others that help market and sell the stock.
Robinhood secured its first underwriting role for fitness-tracking ring company Oura, which filed to go public last week. It was listed last, behind 17 other underwriters led by Goldman Sachs, Morgan Stanley, and JPMorgan Chase, but it opens up a new addressable market for the financial disruptor.
That doesn't mean it will get a shot at Anthropic's IPO or OpenAI's whenever it goes public. But Robinhood has a history of wedging itself into legacy spaces in finance, and this broadens its ecosystem, making it a more powerful player.
Should you buy stock in Robinhood Markets right now?
Before you buy stock in Robinhood Markets, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Robinhood Markets wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $414,015!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,385,459!*
Now, it’s worth noting Stock Advisor’s total average return is 960% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 9, 2026.
JPMorgan Chase is an advertising partner of Motley Fool Money. Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group and JPMorgan Chase. The Motley Fool has a disclosure policy.

As Anthropic's IPO Looms, This Small Financial Powerhouse Just Got Its First Underwriting Job

In sync with its broader effort to scale Asset & Wealth Management (“AWM”) and increase the contribution of recurring, fee-based revenues, The Goldman Sachs Group, Inc. GS entered a strategic collaboration with IG Wealth Management to expand its presence in the Canadian wealth-management market.
Under the agreement, Goldman Sachs Asset Management’s multi-asset solutions team will assume portfolio-management responsibilities for five IG Strategic Wealth Portfolios. The portfolios provide Canadian investors exposure to diversified strategies spanning equities, fixed income and alternatives.
Over the past several years, Goldman has been focused on building a larger, capital-light AWM franchise and reducing its dependence on more volatile, balance-sheet-intensive revenues. wealth management, alternatives and solutions have been identified as three major growth opportunities within AWM. Management and other fees, together with private banking and lending revenues, saw a compound annual rate of 12% from 2021 through 2025, with the rising trend continuing in the first half of 2026, highlighting the increasing importance of durable revenues to Goldman’s earnings mix.
Goldman has supported this strategy through partnerships and targeted acquisitions. In September 2025, it partnered with T. Rowe Price TROW to develop public-private investment solutions for wealth and retirement clients. Goldman also acquired Innovator Capital Management in April 2026, adding about $31 billion in assets under supervision and strengthening its defined-outcome ETF capabilities. In August 2026, it agreed to acquire NEOS Investments, which manages roughly $30 billion. Together, NEOS, Innovator and Goldman’s existing operations are expected to create a $130-billion global ETF platform, expanding its reach among advisors and wealth-management clients.
GS entered an agreement in August 2026 to acquire LCN Capital Partners, adding a specialist investment platform focused on sale-leaseback, build-to-suit and triple-net-lease real estate investments. Collectively, these moves demonstrate Goldman’s strategy of adding differentiated investment capabilities that can attract third-party assets and generate recurring management fees.
Overall, the IG Wealth Management collaboration underscores Goldman’s continued focus on scaling AWM and building a more durable revenue base. Alongside the T. Rowe Price partnership and the Innovator, NEOS and LCN transactions, the latest collaboration strengthens GS’s third-party distribution capabilities and broadens its addressable wealth-management market. Over time, successful expansion of these relationships should support recurring fee growth, improve the quality of Goldman’s revenue mix and further advance its transition toward a more capital-light business model.
Goldman’s Competitive Landscape?
Two close peers of GS are JPMorgan JPM and Morgan Stanley MS, which are also making efforts to expand their AWM businesses.
JPMorgan’s AWM segment is a steadier, fee-led profit engine inside the bank, spanning asset management and the private bank. For the first half of 2026, the segment’s revenues rose 15% from the year-ago period. As of June 30, 2026, JPMorgan’s assets under management were $5.14 trillion, up 18% year over year, while client assets increased 19% to $7.66 trillion.
Morgan Stanley’s AWM push is more than a diversification story. For the first half, Wealth Management revenues and Investment Management revenues were $20.6 billion, nearly half of Morgan Stanley’s $41.9 billion in firmwide net revenues. As of June 30, 2026, total client assets across Wealth Management were $8.08 trillion, while assets under management or supervision reached $2 trillion under the Investment Management division.
Goldman’s Price Performance & Zacks Rank
GS shares have jumped 37.3% in the past year compared with the industry’s growth of 24.2%.
Goldman currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).

Goldman's IG Deal Expands Canadian Wealth Reach & AWM Scale

Key Points
Vertex Pharmaceuticals' core business is rock-solid, but it is also slowly expanding into new areas.
The company should see improved top-line growth over the next few years, driven by new launches.
The biotech arguably makes a lot of sense as a high-conviction stock to buy.
Analysts are fairly divided on Vertex Pharmaceuticals (NASDAQ: VRTX). The biotech's shares are currently trading at $546, but price targets range from $350 to $672. Analysts at Goldman Sachs are comfortably in the bull camp. Not only does the bank have a "buy" rating and a $653 price target on the stock, but it also recently added Vertex Pharmaceuticals to its highest-conviction list. Should investors be equally excited about Vertex's prospects? Let's discuss the bull case for the drugmaker.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Vertex's expanding portfolio
Vertex's strategy is simple. The company develops innovative medicines for diseases with high unmet needs, particularly (though not always) rare conditions. There are advantages and disadvantages to this approach. On the one hand, Vertex's addressable opportunity within some areas can be small. However, the company also faces less competition than it would in larger, more competitive markets. Vertex currently generates most of its revenue from its drugs that treat cystic fibrosis (CF), a rare disease that causes thick, sticky mucus to form in the lungs, disrupting breathing, trapping germs and bacteria, and leading to chronic infections.
CF patients need to take Vertex's treatments indefinitely, and since the company has virtually no competition, it benefits from tremendous pricing power. The result is a core CF business that generates consistent revenue and earnings and could continue to do so until Vertex's most important drugs lose patent exclusivity in the late 2030s. Though it is always possible that another biotech will develop a competing therapy, none has done so yet, and it isn't for lack of trying.
Still, Vertex has been seeking to diversify its lineup to mitigate the risk posed by competition to its prospects. It has had limited success so far. Newer launches like Casgevy, a gene-editing medicine that treats two rare blood diseases, and Journavx, a therapy for acute pain, have not yet generated significant revenue. But Vertex still has an attractive pipeline, which has recently become even more compelling following an acquisition. Vertex recently bought out Crinetics Pharmaceuticals for $10 billion in cash.
The company's portfolio now features Palsonify, a medicine approved last year for acromegaly, a rare disorder that causes patients' bones and organs to grow larger than normal, leading to various health problems. Vertex also inherited atumelnant through the acquisition. Atumelnant is an investigational medicine in phase 3 clinical trials for congenital adrenal hyperplasia, a rare, genetic hormonal disease. Vertex estimates that Palsonify and atumelnant could generate more than $5 billion in combined peak sales.
The important thing here is that the company is casting a wide net. Between Casgevy, Journavx, and Palsonify, its portfolio of approved products is slowly expanding beyond CF, and there is a good chance it will add povetacicept to that list by year-end. Povetacicept is an investigational medicine for IgA nephropathy for which Vertex has requested regulatory approval in the U.S.
Vertex should make clinical progress elsewhere, too. The company's pipeline also includes inaxaplin, a potential medicine for APOL-1-mediated kidney disease. It boasts additional assets in phase 2 and phase 3 clinical trials, too. That's in addition to its rock-solid CF portfolio that still has a solid growth runway.
A table-pounding buy
Vertex Pharmaceuticals' revenue growth has slowed in recent years as it has achieved deeper penetration within its core CF market.
But top-line growth should jump as Journavx and Casgevy start generating more revenue (the latter recently earned an important label expansion), and it launches brand-new medicines across several therapeutic areas. There is always the risk of clinical and regulatory setbacks.
And some other pharmaceutical company might still launch competing CF therapies. But Vertex now has a large and diversified pipeline that helps mitigate these risks. Even the occasional clinical trial failure (and Vertex has experienced several in recent years) shouldn't be catastrophic for its prospects. For all those reasons, Vertex is also among my highest-conviction holdings. Long-term investors should seriously consider purchasing this stock.
Should you buy stock in Vertex Pharmaceuticals right now?
Before you buy stock in Vertex Pharmaceuticals, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vertex Pharmaceuticals wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Prosper Junior Bakiny has positions in Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Goldman Sachs Group and Vertex Pharmaceuticals. The Motley Fool has a disclosure policy.

Goldman Sachs Just Added Vertex Pharmaceuticals to Its Conviction List. Here's the Bull Case for the Big Biotech Stock

The Carlyle Group Inc. CG is expanding its wealth-management business to support fee revenue growth. The company’s segment fee revenues expanded at a 5.7% compound annual growth rate (CAGR) during 2022-2025 and continued to increase in the first half of 2026. As of June 30, 2026, fund management fees represented 73.7% of total segment fee revenues. Expanding its reach among wealth clients and advisors represents an important opportunity for CG to broaden the base supporting future management-fee growth.
To capitalize on this opportunity, Carlyle is expanding its Global Wealth platform to make its private-market strategies more accessible to high-net-worth investors, financial advisors and other wealth clients. The company is strengthening this channel through acquisitions that add both distribution capabilities and technology.
In June 2026, the company completed the acquisition of a majority stake in MAI Capital Management, giving it a direct presence in the advisor-led wealth-management market. The transaction provides CG with a platform to expand its wealth client base and pursue further opportunities in the registered investment adviser market. Earlier, in December 2025, it also acquired Intelliflo from Invesco, adding wealthtech capabilities and digital infrastructure to its platform.
Carlyle is also expanding its wealth reach through partnerships. In April 2026, the company expanded its partnership with SEI to develop private-market solutions for wealth and retirement investors. Earlier, in June 2025, CG partnered with UBS Group’s Unified Global Alternatives business to develop an open-ended private-equity secondaries solution for wealth clients. These partnerships can expand its distribution reach and provide greater access to wealth clients and advisors.
These efforts are expected to strengthen Carlyle’s wealth and retirement business and support future fundraising. The company is targeting more than $2.8 billion in management fees by 2028 compared with $2.2 billion in 2025. Management expects wealth and retirement to account for 20% of more than $200 billion in targeted inflows through 2028. Higher inflows from these channels could increase fee-generating assets and support management-fee revenue growth.
Overall, the company is strengthening its wealth business through acquisitions, technology and partnerships. By expanding access to private-market strategies and broadening its distribution reach, these efforts can drive higher fundraising and fee-generating assets. This expansion will support management-fee growth and create additional avenues for fee revenue growth.
Other Finance Firms Expanding Wealth Management Capabilities
Other financial firms, including Goldman Sachs GS and SouthState Bank SSB, are also expanding their wealth-management businesses to strengthen fee-based revenue and diversify growth.
Goldman Sachs is expanding its Asset & Wealth Management business through acquisitions and new investment offerings. Recent moves, including the acquisitions of Innovator Capital Management and Industry Ventures and the planned acquisitions of NEOS Investments and LCN Capital Partners, are broadening its product capabilities and wealth-management reach. Goldman Sachs’ earnings are projected to rise 13.2% over the next three to five years.
Similarly, SouthState Bank is expanding its wealth-management platform through acquisitions and advisor investments. Trust and investment services income expanded at a 14.6% CAGR during 2021-2025, with growth continuing in the first half of 2026. The Independent Bank acquisition added Private Capital Management, while its merger with SouthState Advisory further strengthened wealth capabilities. SouthState Bank expects fee income to reach 55-60 basis points of average assets in 2026.
Carlyle’s Price Performance & Zacks Rank
Over the past six months, CG shares have lost 3.8% against the industry’s 15.3% growth.
Currently, Carlyle carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

How Carlyle's Wealth Push Opens New Avenues for Fee Revenue Growth

Shares of The Goldman Sachs Group GS have gained 38.6% in the past year, outperforming the industry’s rise of 26.1%. Its peers, Morgan Stanley MS and JPMorgan’s JPM shares rose 46.2% and 22.6%, respectively, over the same time frame.
Price Performance
With such strong momentum, investors may be wondering whether to buy the GS stock now or wait for a better entry point. To help answer this question, let us take a closer look at the key factors driving Goldman’s growth and assess whether the stock still has room to run.
M&A Strength Reinforces GS’s IB Franchise
Merger and acquisition (M&A) advisory remains a key competitive strength for Goldman. Winning mandates on large transactions not only supports advisory revenues but can also generate opportunities across financing, underwriting and other client businesses.
Recent league-table rankings highlight that strength. Goldman was the only adviser in South and Central America to exceed $10 billion in aggregate deal value during the first half of 2026, according to GlobalData. It also ranked first among North American M&A advisers by deal value, advising on $437.7 billion in transactions.
The favorable M&A backdrop led Goldman to deliver strong results. GS’s IB fees rose 52% year over year in the first half of 2026, driven by higher advisory, equity underwriting and debt underwriting revenues amid improving capital markets activity.
Management also sounded constructive about the operating environment following the second-quarter results. CEO David Solomon highlighted accelerating momentum across the company’s businesses and pointed to strong client demand for Goldman to advise on major strategic transactions. Management noted that the investment banking backlog reached its highest level in five years, including a record advisory backlog, supported by robust strategic M&A activity, AI-related capital formation and stronger financing demand.
AI-Led Initiative to Transform GS Business
Goldman is undertaking an ambitious, firmwide artificial intelligence (AI) transformation aimed at boosting fee income, improving productivity and expanding long-term operating leverage. The initiative spans its core businesses, including trading, investment banking, asset management and internal operations, positioning AI as a central growth driver.
In July, Yahoo Finance, citing Reuters, reported that Goldman Sachs Asset Management had launched AlphaAI, an artificial intelligence-focused investment platform. The initiative underscores the firm's conviction that AI will emerge as a significant driver of investment opportunities and returns across both public and private markets. Earlier, Goldman partnered with Anthropic on a $1.5-billion initiative designed to accelerate AI adoption across hundreds of portfolio companies.
At the center of Goldman’s transformation are two major initiatives — One Goldman Sachs 3.0, or OneGS 3.0, and the GS AI Assistant program. OneGS 3.0 is a multi-year effort to integrate AI into the firm’s core operating model rather than treat it as a standalone technology. The program focuses on simplifying workflows, modernizing infrastructure and supporting scalable growth through shared platforms, standardized processes and higher-quality data.
The GS AI Assistant is expected to further improve employee productivity by helping professionals analyze information, generate content and complete routine tasks more efficiently. As adoption expands, the platform could reduce manual workloads and allow employees to devote more time to client engagement, decision-making and higher-value activities.
Management has expressed strong confidence in AI’s long-term potential. Although spending on AI, data and digital infrastructure may keep expenses elevated in the near term, the investments could generate meaningful productivity gains and help the firm move toward its medium-term efficiency ratio target of 60%.
Goldman’s Strategic Streamlining Pays Off
GS streamlining efforts have been underway for some time as it retreats from the underperforming consumer banking ventures. Under CEO David Solomon, GS has embarked on a deliberate transformation to exit non-core consumer banking and double down on the divisions wherein Goldman maintains a clear competitive advantage.
In sync with its restructuring efforts, in August 2026, Goldman agreed to acquire NEOS Investments. The acquisition will add $30 billion in assets across NEOS's 19 options-based income ETFs to Goldman Sachs Asset Management's existing $40 billion in income and outcome-oriented options-based ETF solutions. Once complete, the deal will make Goldman Sachs Asset Management the eighth-largest active ETF provider.
In April 2026, GS acquired Innovator Capital Management, expanding its active ETF capabilities as part of a broader strategy to build durable revenue streams through diversified asset and wealth management offerings. In the same month, Goldman completed the divestiture of its Polish asset management business, Goldman Sachs TFI, to ING Bank Slaski, further streamlining its asset management operations. In the third quarter of 2025, the company transitioned the General Motors credit card program.
These moves demonstrate a well-thought-out exit, allowing the company to reallocate capital and attention toward higher-margin, more scalable businesses like Global Banking and Markets, and the asset and wealth management divisions.
GS Robust Liquidity Aids Capital Distribution
Goldman maintains a fortress balance sheet, with the Tier 1 capital ratios well above regulatory requirements. This financial strength allows it to return capital to its shareholders aggressively through buybacks and a healthy dividend yield.
As of June 30, 2026, cash and cash equivalents were $187 billion, while deposits totaled $558 billion. Total unsecured debt (comprising long-term and short-term borrowings) was $438 billion, of which only $90 billion was near-term borrowings.
Following the Federal Reserve’s 2026 stress test, the company increased its quarterly common stock dividend by 11% to $5 per share. The company also has a share repurchase plan in place. In the first quarter of 2025, the board approved a share repurchase program of up to $40 billion of common stock. As of June 30, 2026, Goldman had $21.6 billion worth of shares available under authorization.
Supported by Goldman’s robust liquidity and capital levels, its shareholder payout activities appear sustainable.
Goldman’s Earnings Prospects & Valuation Analysis
Analysts are bullish on GS. Over the past 60 days, the Zacks Consensus Estimate for 2026 and 2027 earnings has been revised upward. The Zacks Consensus Estimate for Goldman’s 2026 and 2027 earnings implies year-over-year growth of 34.2% and 4.9%, respectively.
Estimate Revision Trend
The GS stock currently trades at a premium to the industry. The stock is trading at a forward price/earnings (P/E) of 14.58X above the industry average of 14.14X. Its peers JPMorgan and Morgan Stanley are trading at a P/E of 14.47X and 16.76X, respectively.
Price-to-Earnings F12M
Final Thoughts on GS Stock
Goldman appears well-positioned to sustain its growth momentum, supported by strength in investment banking, a robust M&A pipeline, AI-led productivity initiatives, and continued expansion in asset and wealth management. Strategic streamlining, solid liquidity and healthy capital levels further support shareholder returns through dividends and share repurchases.
While the stock trades at a modest premium to the industry, improving earnings estimates and strong business momentum help justify the valuation. Given its favorable earnings outlook, leading investment banking franchise and disciplined capital allocation, the GS stock offers an attractive investment opportunity at current levels.
Goldman currently sports a Zacks Rank #1 (Strong Buy), supporting a bullish outlook on the stock. You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).

Goldman Sachs Group, Inc. (The)

Trend

Trend Class

Trend Power

Pattern

EMA

EMA-20

EMA-50

EMA-100

EMA-20

EMA-50

EMA-100

Oscillators

Stochastic

RSI

MACD

Candle pattern type